Home' Local Media Today : February 2015 Contents 8 | LOCAL MEDIA TODAY | February 2015
Local Media Association R&D Members
Contact Al Cupo, firstname.lastname@example.org , for more information
Become a R&D Member
• Right to vote on all Local Media Association issues • Monthly logo and contact listing in Local Media Today
• Quarter page advertisement in the annual R&D partner issue of Local Media Today • Premium listing in the
exhibit/sponsor brochure at LMA conferences and event
Survey Says! Survey Says!
t the beginning of January, we conducted a
survey of member and non-member top local
media executives about their use of advertis-
ing products and services. The information we gathered
is important in helping LMA make better, more relevant
decisions about training, webinar topics and conference
agendas in 2015.
The data yielded some surprising results. When it came
to products and services being sold, almost 70 percent
said that they were selling mobile advertising. This ranked
the highest over 16 other products and services listed.
Mobile is growing faster than all other digital advertis-
ing formats so it is good to see that members have taken
the steps to capture these burgeoning mobile ad dollars.
Borrell Associates survey of SMBs in 2014 revealed that
smaller businesses spend an average of 27.9 percent of
their ad budgets on digital media and a further 11.3 per-
cent specifically on mobile advertising.
While 37 percent of the members are currently selling
native advertising, 35 percent said that they plan to begin
offering it in 2015. This is the top advertising product or
service that members are adding in 2015. According to
BIA/Kelsey, “from 2013 to 2018, U.S. native social advertis-
ing, spurred primarily by Facebook’s News Feed ads and
Twitter’s Promoted Tweets, will surge to $9.4 billion in
2018, up from $1.8 billion in 2013 (CAGR: 38.6 percent).”
In 2015, BIA/Kelsey expects native social advertising will
eclipse social display for the first time.
Last year we kicked off our first native advertising
summit in Washington, D.C., and with so many members
looking to get into the native ad category we plan to bring
the summit back in July of this year. Like last year, it will
feature sessions on what works and what doesn’t and how
to navigate and get started in the space. At our Digital Rev-
enue Summit, being held April 29/30, in Chicago, we’ve
got a great native advertising session planned. Moderated
by Todd Handy of Deseret Digital, the panel is made up of
local media companies who will highlight success stories
and business models.
More than half those surveyed said that they have a
digital agency and of these, 69 percent maintained it as a
separate brand. They all offered a wide array of services
and products. It was interesting to note that 29 percent of
the digital agencies sell competitive media as part of their
offerings. We realize the importance of digital agencies
to the members and every November we hold a digital
agency summit in Chicago. We are also planning some
second quarter webinars on digital agency topics.
Fifty percent, with agencies or not, indicated that their
sales teams are made up of teams that cross sell. Only 18
percent said they have dedicated sales reps for digital.
From a recent “Digital Sales Forces” report that Borrell As-
sociates just conducted, they note “...we’ve discovered that
companies that employ digital-only sales reps — even one
or two — tend to have far more digital revenue than those
who don’t. It’s not that ‘traditional’ print or broadcast reps
can’t sell digital; there’s just overwhelming evidence that
a rep who sells two competing products always winds up
favoring one. And that could be bad news in both direc-
tions: For a media company focusing its traditional-media
reps too much on digital sales . . . or vice-versa.”
Of companies that employed at least one digital-only
sales rep the digital revenue
was astronomical compared to
companies that don’t employ
dedicated sales reps. Those that
have digital-only reps earned
four times more in digital
revenue than those that did not.
The report further reveals - “...
two different newspapers, each
with a total of 22 sales reps, re-
ported $7 million in digital sales
and $360,000 in digital sales.
The difference? One of them
had seven sellers dedicated
exclusively to digital advertis-
ing; the other had none.” Why more members have not
adopted this approach in light of the studies is perplexing
and we plan to study this some more this year. LMA will
be doing a webinar soon on the Borrell Associates “Digital
Sales Forces” report. Since part of their survey was made
up of LMA members, it will be interesting to see how LMA
compares to other non-member companies and other
Survey respondents on average estimated digital to be
12 percent of their total revenue. While it may appear to
be a small percentage now, over 42 percent of the respon-
dents believe that in the next five years digital will make
up 25 percent or more of their revenue. LMA is sharply
focused on helping our members get to that 25+ percent
mark in the next few years.
This survey has shown us the direction in which ad ser-
vices and products are headed. As we move into 2015, we
plan to support and educate LMA members on the latest
digital ad revenue trends with top-notch, low cost sales
training, best-in-class webinars and innovative confer-
Sales & Marketing
For more information about this study, contact me at
email@example.com or 804-360-9434.
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